“Made in Europe” as the key to security of supply in Austria

2023-09-29 16:58:20

High-profile panel discussion on Austria as a production location and the supply of pharmaceuticals in Austria

Graz (OTS) – On September 29, 2023, the Austrian Generics Association and the Austrian Biosimilars Association invited people to a discussion event under the motto “Made in Europe” as the key to security of supply in Austria. Together with guests from politics, business and the pharmaceutical industry, there was an intensive debate regarding the importance of the patent-free market, necessary measures to strengthen domestic production and the long-term security of drug supplies. Host Michael Mayr, General Manager at Fresenius Kabi Austria GmbH, moderated the program. Afterwards, during a production tour at Fresenius Kabi in Graz, exclusive insights into the production of sterile medicines at the factory in Graz or into the packaging and logistics center in Werndorf were gained

Adrian van den Hoven, Director General of the European generics and biosimilars association “Medicines for Europe”, provided exciting input with his keynote speech on the European perspective of the patent-free market and the need for a “European Medicines Security Act” for a sustainable supply of medicines in Austria too . Sabine Vogler, head of the department for pharmaceutical economics at Gesundheit Österreich GmbH (GÖG), presented current results from a GÖG study on local production of drugs as a measure to overcome drug shortages. In the subsequent panel, the situation in Austria was discussed by members of the National Council Josef Smolle, ÖVP health spokesman, Wolfgang AndielPresident of the Austrian Generics Association (OeGV) and Sabine Möritz-KaisergruberPresident of the Austrian Biosimilars Association (BiVÖ).

Economic conditions influence drug supply

Around 600 medications are currently unavailable or only available to a limited extent, including antibiotic juices for children, painkillers and medications for cardiovascular diseases. In addition, around 20 medications are removed from the green area of ​​the reimbursement code every month.

The generics and biosimilars industry ensures the basic supply of the Austrian population: More than 90 percent of the medication packages sold in Austria are from the patent-free segment. Thanks to the cheaper therapy costs of generics and biosimilars, more patients can be treated and the financial burden on the healthcare system can be relieved. However, for many months the industry has been operating in an ever-increasing triangle of rising costs, steadily falling prices and growing regulatory requirements. This makes it increasingly difficult to produce and market medicines economically in Austria.

The unfavorable general conditions have led to the production of active ingredients in particular being relocated from Europe to Asia over the last two decades. Nevertheless, Austria is home to a strong and efficient generics and biosimilars industry.

Bundle of measures for a strong location and secure drug supply

There was agreement that a predictable and competition-promoting framework is needed for a sustainable supply of medicines. These include:

Location promotion: A clear commitment to domestic or European production not only in location measures, but also in market access. In the reimbursement market, the massive price pressure on manufacturers of generics and biosimilars must be eased and procurement processes in hospitals must finally take into account criteria to improve security of supply and not just the cheapest price.

Fair prices: The very restrictive pricing system for generics and biosimilars in Austria has long since reached its lower limit. If prices continue to be pushed down, many medications will continue to be missing from pharmacies next winter. Increasing the prescription share of generics and biosimilars would achieve the same savings effects as through further price reductions, but would keep these drugs in the supply.

Index adjustment: The introduction of the possibility of adjusting drug prices to the consumer price index might at least partially compensate for the enormously increasing costs. In practice, pharmaceutical companies are currently unable to pass on the cost increases.

Transfer of the biosimilars pricing rule into permanent law: The biosimilars pricing rule will also expire at the end of the year. As a result, the health system not only loses a massive savings potential of 140 million euros over the next five years – the supply of patients with vital therapies is also put at risk. For example, new biosimilars, such as those for multiple sclerosis therapy, will no longer be available to domestic patients or will only be available with a very long delay following the independent biosimilars price rule expires in 2024.

Questions & Contact:

Ute Stocker
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